Rate of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years Current Year Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Previous Year $756,000 470,000 1,910,000 Common stock, $1 par value 90,000 Paid-in capital in excess of par 990,000 Retained earnings 1,400,000 2,710,000 The income before income tax expense was 1999,600 and 1874,700 for the current and previous years, respectively Determine the ratio of abilities to stockholders' equity at the end of each year. Round to one decimal place Current year $196,000 470,000 2,380,000 110,000 990,000 Determine the times interest earned ratio for both years and to one decimal place

Rate of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years Current Year Accounts payable Current maturities of serial bonds payable Serial bonds payable, 10% Previous Year $756,000 470,000 1,910,000 Common stock, $1 par value 90,000 Paid-in capital in excess of par 990,000 Retained earnings 1,400,000 2,710,000 The income before income tax expense was 1999,600 and 1874,700 for the current and previous years, respectively Determine the ratio of abilities to stockholders' equity at the end of each year. Round to one decimal place Current year $196,000 470,000 2,380,000 110,000 990,000 Determine the times interest earned ratio for both years and to one decimal place

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 13E: Ratio of liabilities to stockholders equity and times interest earned The following data were taken...

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Ratio of Liabilities to Stockholders' Equity and Times Interest Earned The following data were taken from the financial statements of Hunter Inc. for December 31 of two recent years: CurrentYear PreviousYear Accounts payable $698,000 $212,000 Current maturities of serial bonds payable 460,000 460,000 Serial bonds payable, 10% 1,920,000 2,380,000 Common stock, $1 par value 100,000 130,000 Paid-in capital in excess of par 1,130,000 1,130,000 Retained earnings 3,900,000 3,100,000 The income before income tax expense was $714,000 and $624,800 for the current and previous years, respectively. a. Determine the ratio of liabilities to stockholders' equity at the end of each year. Round to one decimal place. Current year fill in the blank 1 Previous year fill in the blank 2 b. Determine the times interest earned ratio for both years. Round to one decimal place. Current year fill in the blank 3 Previous year fill in the blank 4
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